Saturday, 27 August 2011

7 Secrets of a successful property investor- Secret #1 - Location, Location, Location

Finding the right location
The most important part of any property investment strategy should be location. A common mistake made by investors is to think that by employing the “Zulu principle” they can become experts in their own area and build a portfolio of properties wholly in the same area. I have no doubt that over time this strategy will identify the bargains in plain sight and also the better properties in the area – but this strategy has a big weakness.

Your potential for growth is limited to the strength in your area and when the market takes a rest, then so does your portfolio. Why not identify where in the UK the greatest strengths for growth are?
We look for 3 key themes in any area – a. Education – ie a university town, b. employment – good jobs market strength and business centres c. tourism – proximity to popular tourist hot-spots. This year we have identified these specific locations as good investments in the long term

247 flights per week
Jamie Oliver and Rick Stein (celebrity chefs) boast prestige restaurants in the area
Fabulous beaches with surfing all year round
People seeking a duel lifestyle can commute use Newquay as the weekend location
Waterfront locations command the best rents and become the best for capital growth

The Cotswolds
Extremely popular destination for UK and overseas tourists gets 1 million hits per month from overseas web visitors. Tourist hot-spots in the area are Bourton-on-the-Water, Stow-on-the-Wold and Moreton-in-Marsh.
RAF Lineham closure lead to 200 families being relocated to RAF Brize Norton which is in the Cotswolds – We believe Rissington is a hotspot for the extra demand bearing on 2 and 3 bed properties. 

London - Muswell Hill
In good locations 10 minutes walk from a tube station and you are in the centre of London
Up and coming area becoming very popular with young professionals

London – Stratford

The London Olympic games brings £2 billion investment into the area with 30,000 new jobs being created and a complete face lift of the site for the stadium. There is a new shopping centre destined to be the largest in Europe called Westfield and this will boast all of the high street brands. The new stadium will be the London Premiership club West Ham’s new ground. With 2 stops to Canary Wharf and the West End close by too – this location is too good to miss with the Olympic 2012 games just around the corner. Growth is baked into the cake.

The second weakness of building a portfolio solely in one location is that you are not diversifying into the strengths of different areas which have periods of growth. It is about identifying those periods of growth and buying into the growth story that gives you the most capital growth and if you have many properties in different locations you are spreading the risk of a downturn or lull in the market for a specific area.

For a full list of the properties we recommend grab some ideas from our website click here
Look out for Secret #2 - Research, Research, Research

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